Justice Department Investigating Ten Big Banks For Precious Metals Rigging?

Did you have to watch “Peanuts” 5,000 times before you figured out that Charlie Brown was not going to kick that footlball?   – John Titus, “Bailout Films”

The Wall Street Journal reports this evening that “prosecutors in the Justice Department’s antitrust division are scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodities Futures Trading Commission has opened civil litigation”  (Wall Street Journal).    Ten of the biggest banks in the world are allegedly under “scrutiny:”  HSBC, Bank of Nova Scotia , Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Société Générale, Standard Bank and UBS.

The first question that comes to mind, is “does the Justice Department even have jurisdiction to go after banks for possible illegal market activity conducted in London?” The simple answer is that it does if the banks were conspiring in their price-fixing activities in offices in the U.S.

But let’s face it.  This is just another episode of the U.S. Government’s Kabuki Theatre version of “let’s show the public we’re cracking down on the illegal activities of the big bad banks.”   I can guarantee everyone reading this that, at best, the Justice Department will issue some small wrist-slapping sized fines and pat the banks on the butt and send them on their way.   This is just wash, rinse and repeat of the “crackdown” on mortgage and foreclosure fraud.

How come the Justice Department and the CFTC are not investigating the obvious illegal price rigging activities going on their own backyard at the Comex?  I’ll tell you why. Because every single legal professional at the Justice Department and the CFTC have either worked in the in-house legal teams at every Too Big To Fail Bank OR want to work on the legal teams at those banks.

You think I’m exaggerating?  Watch this:   How Eric Holder Turned “Justice” Into a Wall Street Criminal Protection Racket.

The moral of the story here is that the gold and silver investment community should not get their hopes up that this “investigation” will be anything other than just another insider mob-operated tribunal which completely disregards and parodies Rule of Law.

And no, I only had to watch “Peanuts” twice to figure out that Charlie Brown would never get to kick that football.


18 thoughts on “Justice Department Investigating Ten Big Banks For Precious Metals Rigging?

  1. So basically precious metals will be controlled until it all collapses and price will be the last thing on our minds. Maybe I should not get so depressed about the tens of thousands I have lost on the real stuff and mining shares listening to experts that have not been right since April 2011… maybe it does not matter all that much. But life goes on until collapse day years from now…

    1. Paper dollars will eventually be worthless. If this doesn’t end up in WW3, which I think it will, you’ll be much better off having possession of as much gold/silver coins as you can afford to stack now.

    2. I wonder if the ‘wrongness’ of the market prognosticators in PM’s is more a function of the belief that some form of market existed/exists.

      Control fraud with no fear of prosecution is the order of the day I am afraid.


  2. When we had rumors on gold rigging investigations esp. regarding the LBMA gold always went higher. Now there is now reaction at all on the rumors. That tells you all. These banksters know exactly the outcome of those so-called investigations. It’s a farce!

    1. Another investigation that will find nothing wrong, just like all their previous investigations into financial fraud & corruption.

        1. The real import of these investigations, including the latest Swiss move, is the private legal end of it. As Jim Sinclair states, litigation and the potential for discovery phases of trials and the consequent impacts. The frontrunning of this may start when the fewest are prepared.

  3. When I first looked at the title I thought I had accidently stumbled
    onto “The Onion” website. Those attorney general guys will do
    anything to get a laugh.

  4. TRUTH is like oil in water. It will eventually come to the surface. The wrong doer’s (manipulators in gold and silver ) have the reigns for now because the playing field is theirs and in their favor based on their greedy lies.
    The thing of it is , that the TRUTH of value for both physical gold and silver is based on its finite nature , usefulness as a conductor for technology , electronics , medicine , +++ and the cost that it took/takes to get out of the ground ( which keeps going up $$$wise ).
    Let the fools keep playing their games…their day of reckoning is coming as assured as the sun will rise tomorrow !

  5. Maybe the headline should read, “Justice Department Investigating Ten Big Banks For Precious Metals Rigging, to See What Services They Can Best Provide”

  6. It is incomprehensible that the US gov would allow bullion price discovery, and take down the fiat ponzie scheme used to support the pandering, trillion dollar deficits, used to lock in political power to support the banksters to suck the middle/poor classes dry, and cut of the bankster from their gravy train. The fiat regime will collapse and gold is the only solution, and they know that, and so, the results of this will drag on, and one the monkey show begins, and implosion is going down, then this investigation result will be deemed necessary to show results, as a pre-emptive strike against outright rebellion, timed to lessen the impact of government failure and bankruptcy. When the crimex placed december collars on bullion, ZH asked what do they know, and now we know. Of of this course its a phony face saving ploy, but indicates that they know its going down, and in that, at least there is hope, that it all implodes, and from the ashes we relearn constitutional limited government, real honest money and markets, restoration of the republic and are freedoms trampled upon by the totalitarian socialistic fascist cesspool in DC.

  7. Over my life time, I have witnessed the migration of the evil empire from soviet moscow to totalitarian socialistic fascist DC, as my freedom (from government) are taken away day by day. But every now and then, there is something to laugh at, keeping a sense of humor, through it all. I found this actually funny, even if literally so so so sad.

    from ZH:

    Who is involved in this latest gold-rigging scandal? Why everyone!

  8. What if this is all in preparation for ‘Janopter’ Yellen’s appearance before congress? The Q & A portion of the show should be very interesting, to see if she sticks her support hosed foot in mouth!

    One of her answers to gold price manipulation is going to be most likely;

    ‘I’m sorry I cannot comment on that, since it is now the subject of an active and ongoing investigation by the Justice Department’. After that it will go to long term, as in the CFTC 5 year long investigation into silver manipulation! After which the investigation was led down a blind alley and slowly strangled!

  9. NO rigging ….NOTHING to see here….capitalism in its full glory ,as the market place dictates price movement……brother can you spare a dime…pre 1963 that is…..

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